Postponed Infrastructure & safety

Water pipe renewals

Town staff wrote in November 2025 that water reserve savings are too low, so some needed water pipe renewals have been put off.

Amount
About $78M (our estimate)
Got
$0
Where it stands
To future years. Staff, Nov 2025: water reserve savings are too low, so required renewals were deferred.

What it is

The Town runs its own water system. It has about 108 km of water mains. About 27 km are asbestos-cement pipe, an older type of pipe made of cement mixed with asbestos fibres. Staff say some of it has less than 15 years of life left. In a 2022 Statistics Canada survey, the Town reported 26 km.

In November 2025, staff wrote that yearly savings put into the Water Infrastructure Reserve are too low for the replacement work needed. They said required water renewals "have been deferred to future years."

Staff wrote this in a planning sheet about a request from the Qualicum Beach Memorial Golf Club to help pay for its irrigation system. Staff advised against lending water reserve money for that. The records do not list which water projects were put off.

Our estimate: replacing all 27 km of asbestos-cement pipe would cost about $78 million. This is our own calculation, not a Town figure. It uses the Town's cost for Seacrest Place ($900,000 for 310 m, about $2.9 million per km). Seacrest Place is on a hill, so other streets may cost less per km. The Town's plan budgets $8.3 million for this work over five years. The renewals staff said were deferred have no dollar figure in the records.

What the Town plans to spend

Asbestos-cement water main replacement in the 2026–2030 Financial Plan
ProjectYearBudget
Seacrest Place (310 m) 2026 $900,000
Berwick Road and Crescent Road East 2027–28 $3,013,000
Eaglecrest Drive 2028 $1,113,000
Hall Road north of Highway 19A 2029 $800,000
Canyon Crescent 2029 $865,000
Belyea and Canyon Crescent, Hoylake to Garrett Road 2030 $1,600,000
Total $8,291,000

Source: 2026–2030 Financial Plan, p. 122. With pumps and a $100,000 yearly contingency, planned water renewal totals $8,891,000 over the five years. The Town values its whole water system (wells, reservoirs, pumps and mains) at about $109 million to replace, in 2019 dollars (p. 121). In June 2026 the Eaglecrest Drive water main was combined with the storm main into a $2,863,000 project, now waiting on a federal grant.

What happened

  1. May 2023After a CTV W5 report on asbestos-cement pipes, the Town tests its water at four sites. Seven of eight samples find no asbestos fibres and one finds a single fibre. Staff conclude there is no issue.
  2. November 12, 2025Staff write that water reserve contributions are too low and some renewals have been deferred.
  3. December 17, 2025Council gives early approval to replace the Seacrest Place asbestos-cement water main in 2026, at $900,000 (unanimous).
  4. April 1, 2026The 2026–2030 Financial Plan plans the Eaglecrest Drive water main ($1,113,000) for 2028, paid from Eaglecrest land sales.
  5. June 24, 2026Staff recommend paying for the Eaglecrest Drive water main and storm main from asset management reserves instead of Eaglecrest land sales. Council adopts this change on July 15.
  6. June 29, 2026Council approves applying for a federal grant for the Eaglecrest Drive water main and storm main, total $2,863,000 (unanimous).
  7. September 9, 2026Staff report that construction on Seacrest Place (310 m of pipe) is expected to start in the third quarter of 2026. Staff ask Council to move $13,000 to finish the design for Berwick Road and Crescent Road East, for construction planned in 2027.

Why it matters

  • Water work is paid from the Town's separate water fund, which comes from water user fees and a yearly water parcel tax. None of the Eaglecrest purchase money came from the water fund.
  • The 2026–2030 Financial Plan says replacement costs in 2026 are higher than what is added to the water reserve that year.
  • The plan aims to replace over $1 million of asbestos-cement water main every year for 10 years.
  • A Water Master Plan, including an assessment of the asbestos-cement pipes, is expected to go to Council in early 2027.
  • Across Canada, local governments reported almost 13,700 km of asbestos-cement water pipe in the 2022 Statistics Canada survey. BC reported the most, 4,261 km. Only about two in three local governments answered the question.
  • Health Canada sets no limit for asbestos in drinking water. It says there is no consistent, convincing evidence that swallowing asbestos causes harm. Its draft guidance also says asbestos-cement pipes that are failing or wearing out should be replaced with asbestos-free pipe.
  • WorkSafeBC says old asbestos-cement pipe that is breaking down and is uncovered during a dig must be removed or properly sealed. Reburying it does not count. Pipe beyond the dig can stay in the ground, but the employer must keep a list of it.
  • In August 2026, the provincial Finance Committee's Budget 2027 report said members discussed funding to renew aging water systems, including to address safety concerns about asbestos-cement pipes.
  • Staff also wrote that the Town's Asset Replacement Reserve is underfunded for buildings, drainage, fleet and roads.

Sources

Last checked September 19, 2026. Report a mistake.